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Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) $ 138,000 $ 133,000 335,000 567,000 810,000 405,000 254,000 $ 2,509,000 479,000 485,000 793,000 432,000 249,000 $ 2,571,000 Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 24 377,000 983,000 1,149,000 $ 2,509,000 24 349,000 983,000 1,239,000 $ 2,571,000 Total liabilities and stockholders' equity Joel de Paris, Inc. Income Statement $ 4,675,000 4,114,000 561,000 Sales Operating expenses Net operating income Interest and taxes: Interest expense Тах expense $ 117,000 205,000 322,000 Net income $ 239,000 The company paid dividends of $149,000 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%.

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) $ 138,000 $ 133,000 335,000 567,000 810,000 405,000 254,000 $ 2,509,000 479,000 485,000 793,000 432,000 249,000 $ 2,571,000 Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 24 377,000 983,000 1,149,000 $ 2,509,000 24 349,000 983,000 1,239,000 $ 2,571,000 Total liabilities and stockholders' equity Joel de Paris, Inc. Income Statement $ 4,675,000 4,114,000 561,000 Sales Operating expenses Net operating income Interest and taxes: Interest expense Тах expense $ 117,000 205,000 322,000 Net income $ 239,000 The company paid dividends of $149,000 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%.

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter2: Analyzing Transactions
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Problem 24E: The following data (in millions) were taken from the financial statements of Costco Wholesale...
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Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Assets 138,000 335,000 567,000 810,000 405,000 254,000 $ 2,509,000 Cash 133,000 479,000 485,000 793,000 432,000 249,000 $ 2,571,000 Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 24 377,000 983,000 1,149,000 $ 2,509,000 349,000 983,000 1,239,000 $ 2,571,000 Total liabilities and stockholders' equity Joel de Paris, Inc. Income Statement $ 4,675,000 4,114,000 561,000 Sales Operating expenses Net operating income Interest and taxes: $ 117,000 205,000 Interest expense Тах expense 322,000 Net income 239,000 The company paid dividends of $149,000 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? Average operating assets Margin Turnover 1. 2. % ROI % 3. Residual income
Transcribed Image Text:Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Assets 138,000 335,000 567,000 810,000 405,000 254,000 $ 2,509,000 Cash 133,000 479,000 485,000 793,000 432,000 249,000 $ 2,571,000 Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 24 377,000 983,000 1,149,000 $ 2,509,000 349,000 983,000 1,239,000 $ 2,571,000 Total liabilities and stockholders' equity Joel de Paris, Inc. Income Statement $ 4,675,000 4,114,000 561,000 Sales Operating expenses Net operating income Interest and taxes: $ 117,000 205,000 Interest expense Тах expense 322,000 Net income 239,000 The company paid dividends of $149,000 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? Average operating assets Margin Turnover 1. 2. % ROI % 3. Residual income
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The operating assets of the business do not include the investment in other companies or any undeveloped fixed assets. 

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